RE/MAX Agent Merry Silbaugh Talks TRID

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In light of an October 6, 2015, article in The Spectrum about new TRID property loan closing procedures, RE/MAX Sun Properties Realtor Merry Silbaugh advises buyers on what they should expect and look for in order to stay ahead of the curve.

Merry Silbaugh

The TILA-RESPA Integrated Disclosure (TRID) is a new lending regulation that will extend closings to 45 days or more instead of the up-until-recently 30 days.

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“The TILA-RESPA Integrated Disclosure (TRID) is a new lending regulation that will extend closings to 45 days or more instead of the up-until-recently 30 days,” said Merry. “Now, any time anything changes, the annual percentage rate in the purchase details, new disclosures must be filed.”

According to the article in The Spectrum, TRID, which went into effect on October 3, 2015, clarifies and consolidates several of the required loan documents and changes the timing of some activities of a home-buying transaction; additionally, two forms have been replaced with a five-page “Closing Disclosure” form designed to help consumers understand all the costs associated with the transaction. However, buyers cannot sign their loan documents until three days after the receipt of this form.

“The new guidelines create a set of mandatory loan cost disclosure deadlines that have to be met or the closing will be delayed,” said Merry. “The objective is to provide the consumer with timely cost information and an opportunity to back out of the purchase if the loan becomes more costly than originally disclosed. In my opinion, these guidelines are a good thing.”

Merry adds that they will go a long way toward eliminating the predatory loan practices and the lack of transparency that characterized much of the lending industry and contributed to the housing boom and subsequent bust over the last ten years. As for closing, the close-of-escrow date agreed to in the purchase contract is used to schedule a wide variety of activities needed to facilitate the seller’s move-out and the buyer’s move-in.

“Closing on one property may be coordinated with the closing on another property. Also, the scheduled closing date is often used in determining the expiration date of the buyer’s rate lock,” said Merry. “A delay in a scheduled close-of-escrow date often creates a domino effect with unanticipated complications resulting in added expense and inconvenience for both buyers and sellers.”

Merry stresses that delays should be avoided whenever possible and the competency of the lender is key in avoiding close-of-escrow delays under the new rules. If a buyer chooses to use a loan originator with whom they and/or their agent have no prior experience, Merry further states, the buyer should have a substantive discussion with that prospective loan originator in an attempt to determine his or her level of experience, knowledge of underwriting requirements, general competence and commitment to excellence in the profession.

About Merry Silbaugh, RE/MAX Sun Properties
Whether one has residential real estate needs, leasing needs or income property needs, Merry Silbaugh, of RE/MAX Sun Properties, has a total commitment to providing excellent service throughout the real estate transaction. For more information, please call 602-617-3245. The office is located at 16704 East Avenue of the Fountains, Suite 101, Fountain Hills, AZ 85268.

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